https://www.taxtmi.com/caselaws?id=25969 Purchasing paddy from members, milling it and selling rice on the society's own account was held not to amount to marketing the agricultural produce of members, so deduction under section 80P(2)(a)(iii) was denied. The court treated the activity as a purchase-and-sale transaction by the society rather than member-produce marketing. By contrast, amounts compulsorily transferred to the reserve fund under the Co-operative Societies Act were treated as diverted by overriding title, because the statutory transfer placed the sum beyond the society's control before it became disposable income. That amount was therefore allowable as a deduction in computing business income, producing a mixed tax result. en-us Fri, 25 Apr 1986 00:00:00 +0530 Tue, 02 Feb 2010 10:31:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25969 Purchasing paddy from members, milling it and selling rice on the society's own account was held not to amount to marketing the agricultural produce of members, so deduction under section 80P(2)(a)(iii) was denied. The court treated the activity as a purchase-and-sale transaction by the society rather than member-produce marketing. By contrast, amounts compulsorily transferred to the reserve fund under the Co-operative Societies Act were treated as diverted by overriding title, because the statutory transfer placed the sum beyond the society's control before it became disposable income. That amount was therefore allowable as a deduction in computing business income, producing a mixed tax result. Case-Laws Income Tax Fri, 25 Apr 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25969